Get to Know Your Customers Better

Studying your client portfolio allows you to better understand any potential risks incurred by the company, especially when a few significant clients represent a substantial portion of your sales.

1. Analysis and management of client accounts

Even if you have a relatively good understanding of your clients, it is important to delve deeper into their characteristics, including:

• Number of clients;
• Breakdown between large and small clients;
• Private companies and public institutions;
• Industrial sector - service sector;
• Companies or individuals;
• Clients in France or abroad;
• Reputation of each client;
• Payment terms based on the type of clientele;
• Payment methods used: credit card, draft, transfer.

2. A reflective tool: the 'aged balance' of clients

The 'aged balance' is an accounting statement offered by all accounting software, and it is an interesting indicator for the entrepreneur. It shows the outstanding balances of client receivables month by month. It includes all clients and indicates when the collection of payment is due. With the aged balance, you can:

• Know when the collection of sums owed by clients should take place;
• Compare the marked deadlines with the actual recorded payment period (sometimes there is a gap between the payment terms noted on the invoice and the terms practiced by the clients);
• Monitor payment delays.